Is Help to Buy back? Spoiler: Not really — but there’s a twist.
Let’s cut through the spin. There’s been talk, whispers, speculation, yet as of now Help to Buy is not back in the old form.
Some new schemes are being pitched or introduced that look a little like Help to Buy’s cousin, not its clone.
What’s happening now and what’s new?
A permanent Mortgage Guarantee Scheme
The government has introduced a 2025 Mortgage Guarantee Scheme, now made permanent, which allows buyers with as little as 5% deposit to get mortgages with 91–95% loan-to-value (LTV) form participating lenders such as: Lloyds, Halifax, Bank of Scotland, NatWest, Santander, Barclays, HSBC and Virgin Money.
This is not the same as Help to Buy. There’s no equity loan from the government, no new “interest-free slice.” Rather, the state backs lenders against losses on high-LTV mortgages, making them more willing to lend with small deposits.
It’s a supporting role and is offered to the lenders to incentivise them to lend, Its certainly not the starring role that Help to Buy used to play. Some media are even calling this ‘Freedom to Buy’, but that appears more lip service than reality.
Speculation, political theatre and the New Build Trap
There’s active speculation the government reportedly hired a consultancy to evaluate how Help to Buy fared in the past, which could be groundwork for bringing something back. Developers and housebuilders are also pushing for revivals of Help to Buy style schemes, arguing that demand needs as much stimulus as supply.
But here’s the kicker: Have you seen the ads from house builders and new build developers, “Help to Buy is back!”, “Own your dream home with just 5% deposit!”, “Builder-backed Help to Buy scheme!”
Sounds familiar, doesn’t it? The glossy banners, the smiling couples, the new-build kitchens. But let’s be blunt: these aren’t government schemes; they’re marketing strategies dressed up to look like one.
Developers have clocked that buyers are desperate. Since the real Help to Buy scheme shut its doors. A 2025 property market has many first timers finding themselves locked out, unable to get on the ladder due to high deposits and eye-watering mortgage rates.
Enter the developers, offering what they claim is “the next best thing.” But scratch the surface, and it quickly falls apart.
Many major homebuilders such as Barratt, Taylor Wimpey and Persimmon are offering so called deposit contribution schemes or builder-backed Help to Buy deals. The premise is simple: they’ll ‘’gift’’ you 5% or 10% of the deposit, or pay your stamp duty, or give you cashback on completion.
Sounds generous? It’s not. It’s a discount in disguise, and often you’re paying for it somewhere else in the over inflated list price of the home.
Developers don’t give away money; they move it around. The price you see already bakes in their “contribution.” So, when you think you’re getting a deal, you might just be paying a full fat price for a lean-value product.
In many cases, lenders aren’t fooled either. Mortgage valuers often spot these “incentives” and knock down the property valuation accordingly. That can mean your mortgage offer shrinks, or worse you end up overpaying for a home that’s worth less than you think.
So, If a developer tells you “Help to Buy is back,” ask them two questions: Is it government-backed? (Spoiler: it’s not. Would the price be the same without the incentive? (Spoiler: probably not.)
Until we get real, systemic help for first time buyers, these private “Help to Buy” schemes are lipstick on the same old housing pig — and buyers deserve better than that.